TYING IT ALL TOGETHER
LETTER TO EDMOND CITIZENS
Citizens of Edmond,
As part of our continuous effort to keep you informed on the utilization of your tax dollars, we are pleased to present our Popular Annual Financial Report (PAFR) for the fiscal year ended June 30, 2024. This report is a condensed version of our Annual Comprehensive Financial Report (ACFR). Both reports are available on our website at www.edmondok.gov.
The details in the PAFR summarize our financial position based on the audited financial documents contained within the 2024 ACFR. The ACFR is prepared in accordance with generally accepted accounting principles (GAAP) and Government Auditing Standards (GAS). This report is in summary form and excludes the City’s discretely presented component units which are the Edmond Economic Development Authority (EEDA), the Edmond Historical Preservation Trust (EHPT) and the Park Conservancy Trust (PCT).
The information included in this report is an overview of the City’s economic outlook, an analysis of the financial position of the City, and other key financial data. It provides analysis of the General Fund and discusses how money is received and spent. Additional detailed financial information on the operations of the City may be found in the ACFR.
The City has two primary sources of revenue: utility services and transaction (sales & use) tax. In fiscal year ended June 30, 2024, the city began to see a flattening of sales & use tax receipts year over year. The city provides a wide range of municipal services, including police and fire protection, planning and zoning, street improvements and maintenance, parks, cultural events and general administrative services. The City operates enterprise funds for electric, water resources and solid waste management under the legal entity of the Edmond Public Works Authority (EPWA). EPWA is a public trust that was created under applicable Oklahoma statutes on October 6, 1970, with the city as the named beneficiary. EPWA’s financial operations are reported with the City’s financial statements.
Water improvements continue as outlined in the City of Edmond Water Master Plan located on the city website. The Master Plan is our road map to keep pace with the anticipated growth in our population and to continue to provide a safe water supply for Edmond residents. Infrastructure improvements continue at many of our major intersections with street widening and intelligent traffic light systems as we see growth in construction and population. Improvements and upgrades to our sports complexes, public golf facilities, public trails, park and recreation venues and downtown improvements are continuing.
Thank you for taking interest in your local government. As you review the report, we invite you to share any questions, concerns or comments with us. You may contact the Finance Department at (405) 359-4521, visit the City Manager’s office at 24 E. First Street in Edmond or contact us by email. Email addresses and further information is available at the city website: www.edmondok.gov.
Respectfully submitted,
Kathryn L. Panas, CPA Director of Finance
Nestled on historic Route 66 in central Oklahoma, Edmond covers approximately 87 square miles and is the third largest city in the Oklahoma City Combined Statistical Area (CSA). The City has adopted a charter and operates under a Council-Manager form of government. The city features quiet suburban living with a central business district, major shopping and modern office areas, and hosts a multitude of recreational and cultural events throughout the year.
FORTH WORTH DALLAS
TRUSTWORTHY SERVICE
OUR CORE VALUES
Accountability
We are responsible for our work, our words, and our actions.
Communication
We value efforts to communicate with our customers in a caring, timely, professional manner.
Customer Service
We provide service with courtesy, respect, dependability, flexibility, and timeliness.
Inclusion
We promote an inclusive work force and equitable services for our increasingly diverse community.
Innovation
We value innovation, creative thought, and the collaboration of ideas.
Integrity
We value the spirit of integrity in all aspects of our working lives.
Professionalism
We continue to seek growth, striving to be a learning organization.
Teamwork
We encourage diversity of thinking, ideas, and responsibilities.
STATEMENT OF NET POSITION
The governmental activities' net position for fiscal year ended June 30, 2024, reflect an increase over prior year's net position. The business-type activities also reflect an increase in net position. The full disclosed Statement of Net Position can be located in our ACFR located at edmondok.gov/302/Budget-Reports.
Unrestricted net position refers to all other net position that is not restricted or net investments in capital assets. This represents the amount of unexpended and available resources the City has in funds combined at a point in time to fund emergencies, shortfalls or other unexpected needs. This allows management to track the City’s financial position over time.
$ in Thousands
NET POSITION UNRESTRICTED
9,592 $ ( ( $
governmental activities
Sales tax, franchise fees, fines, state and federal grants finance most of the City’s services.
General Administrative Services Fire Police
Street Construction & Repair
Park Maintenance
205,648
business -type activities
Income from utility services, public golf course and lake fees and operations, the cooperative purchasing program, and transit system operations finance business-type operations.
Electricity Solid Waste
Water KickingBird Golf Course
Drainage Arcadia Lake Wastewater Transportation Services
This number represents the Unrestricted Net Position to pay for emergencies, shortfalls or other unexpected needs in both the Governmental and Business Type Activities for the fiscal year ended June 30, 2024. New reporting standards implemented in 2016 caused our Governmental Activities to report a negative in Unrestricted Net Position. For full disclosure, refer to our ACFR, Note 4 at edmondok.gov/302/Budget-Reports.
CHANGE IN NET POSITION
governmental activities *
The City’s governmental activities’ increase in net position of $11.6 million represents a 71% decrease from the prior year’s change in net position and is primarily the result of no major changes in taxes, charges for services and operating expenses. Major changes in revenues related to the increase in community development fees due to growth in the community, donated capital related to streets and highways, increase in miscellaneous revenue due to the opioid drug settlement, and an improvement in investment revenue and change in fair value of investments. In addition, expenses increased by 9% due to the economic impact of the cost of commodities and an increase in funding to the City’s self-insurance funds. In addition, transfers to other funds increased 487%.
business -type activities *
The business-type activities’ increase in net position of $92.1 million represents a 137% increase from the prior year’s change in net position which is largely attributable to the increase in capital grants and contributions, increase in investment income, and transfers from other funds. Governmental activities transferred $5.5M to the business-type activities for the Uncommon Ground Project. Developers contributed $9.7M of infrastructure. Capital grants of $13M were received and expensed for the water operation. Expenses showed a slight decrease of 2% due to changes in the local economy.
notes
The results indicate the City, as a whole, experienced an increase in total net position of $103.7 million which was the result of revenues exceeding expenses.
*Does not include transfers.
This summary report excludes transfers. Transfers are used to support Government services. For full disclosure see our ACFR note section 3.F Interfund Balances and Activities.
INCREASE IN TOTAL NET
PENSION/OPEB
The following presents the City’s total OPEB liability, as well as what the City’s total OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (3.13 percent) or 1-percentage-point higher (5.13 percent) than the current discount rate:
EDMOND SALES TAX SUPPORTS CITY SERVICE
city services
The City provides a wide range of municipal services, including police and fire protection, the construction and maintenance of highways, streets, and other infrastructure. The City also provides electric, water, wastewater, drainage and solid waste services to its residents under the legal entity of the Edmond Public Works Authority (EPWA). The City also provides a multitude of recreational and cultural events through-out the year. The City’s Kickingbird Golf Course, Arcadia Lake and many City parks provide hours of entertainment to our citizens.
An ordinance passed and approved by the citizens of Edmond requires that 30% of General Fund revenues(defined as taxes, licenses and permits, fines and forfeitures, charges for services, interest and miscellaneous revenues) be used for funding fire department operations and that 36.8% of these same General Fund revenues be used for funding police department operations
sales tax breakdown
The State of Oklahoma tax rate is 4.5% and is added to the 3.75% City’s sales tax rate that is levied on all taxable sales within the City. It is recorded as follows:
Two cents recorded within the General Fund.
One eighth cent recorded as revenue within the Park Sales Tax Fund to account for operations and facility improvement costs of the City’s park and recreation system.
Three quarter cent recorded as revenue within the 2000 Capital Improvement Tax Fund to account for capital improvements as recommended to the City Council by the Capital Projects & Financing Task Force.
8.25 %
One quarter cent recorded as revenue within the Fire Public Safety Limited Tax Fund to account for improvements to the fire department per voter approval.
One eighth cent recorded as revenue within the Police Public Safety Limited Tax Fund to account for improvements to the police department per voter approval.
One half cent recorded as revenue within the 2017 Capital Improvement Tax Fund for various capital improvements. This fund replaces the 2012 Public Safety Center Capital Improvements Tax Fund. This was voted on by our voters in April 2016 and will continue for 10 years. This tax will be up for renewal by voters in 2027.
MONEY COMES AND MONEY GOES
CITY OF EDMOND
IT’S OWN LARGEST ELECTRIC UTILITY CUSTOMER
10K+
POPULATION GROWTH SINCE 2014
3,200
EDMOND PUBLIC SCHOOLS IS THE CITY’S LARGEST EMPLOYER
900+
FULL TIME EMPLOYEES AT THE CITY OF EDMOND
60%+
CITY SALES TAX FROM RETAIL SALES IN 2024
484
RESIDENTIAL CONSTRUCTION PERMITS ISSUED
$860K
COLLECTED HOTEL TAX IN 2024
8 FIRE ENGINES OWNED BY THE CITY OF EDMOND
11K+
EDMOND FIRE DEPARTMENT EMERGENCY RESPONSES
562K+ MILES OF CITY TRANSIT ROUTES MAINTAINED
5,108
ACRES OF PARKS AND RECREATION LAND
30 BASEBALL AND SOFTBALL FIELDS MAINTAINED
general fund revenues
Sales and Use Taxes
Charges for Services*
Fines and Forfeitures
Franchise & Public Service Tax
Intergovernmental Licenses and Permits
Miscellaneous
Investment Income
GENERAL FUND
general fund expenditures
General Government
Public Safety Health and Sanitation Culture, Parks, and Recreation
Economic Development
Streets and Highways
Capital Outlay
The General Fund is the primary operating fund for City services. It is used for all activities except those legally or administratively required to be accounted for in other funds.
*Per City ordinance, 30% of General Fund revenues are transferred and used for funding the Fire Department operations and 36.8 % of these same revenues will be used for funding Police Department operations. For more information, refer to Basic Financial Statements in our ACFR..
GENERAL FUND EXPLANATION OF
TERMS
general fund revenues
Sales and Use Taxes
Of the 3 3/4 cent sales tax on taxable sales within the City, 2 cents is recorded as revenue in the General Fund. Use tax is if you have purchased items for use in Oklahoma from retailers who do not collect Oklahoma sales tax, you owe Oklahoma use tax on those items. Use tax is paid by the buyer when the Oklahoma sales tax has not been collected by the seller. This includes purchases made from an out-of-state retailer whether by mail order, catalog, television shopping networks, radio, Internet, phone or in person.
Charges for Services
Includes all revenues collected on services provided through the General Fund, such as planning filing fees, cemetery revenues, right of way, animal welfare welfare fees, 911 service fee, recreation program fees and other miscellanious charges.
Fines and Forfeitures
Includes all court fines and fees, and building code violations.
Franchise and Public Service Taxes
Includes fees assessed for private use of public property.
Intergovernmental
Activities of two or more governments including revenues such as alcoholic beverage tax, cigarette tax, county-property resale, grants, commercial vehicle tax, and gasoline excise tax.
Licenses and Permits
Includes all permits and licenses required by the City including engineering inspections fees, occupational licenses, oil and gas fees, public safety revenues including plumbing, building, elecrical, heat/air, furniture stocking, fixture stocking, fire permits, miscellaneous permits, contractor registration, re-inspection fees, temporary certificate of occupancy, building inspection feed, sign permits, and commercial plan review fees.
Miscellaneous
Items that are not covered by any of the aforementioned categories.
Investment Income
Revenue earned from our investments portfolio.
general fund expenditures
General Government
Includes city council, municipal court, planning, and airport maintenance and repairs.
Public Safety
Expenditures within the funds that supports the safety of our citizens, such as police, fire, emergency management, and animal welfare.
Health and Welfare
Includes code enforcement, family services, and social services.
Culture, Parks and Recreation
Includes maintenance and administration of 26 parks/ playgrounds, pool, splash pad, sports fields, Festival Marketplace, recreation programs, Senior Center, Gracelawn Cemetery, and Edmond Historical Preservation and Trust.
Streets and Highways
Street rehabilitation and resurfacing, and upkeep of the medians.
Capital Outlay
Expenditures for assets that are intended to be held or used for a extended period of time. Includes land, land improvements, building, building improvements, machinery, equipment, and furniture and fixtures. Also includes infrastructure such as streets, sidewalks, culverts, curbs, roads and bridges.
GENERAL FUND
In an effort to ensure the continuance of sound financial management of public resources, the City of Edmond’s Unassigned Fund Balance within the General Fund will be maintained to provide the City with sufficient working capital and a comfortable margin of safety to address emergencies, sudden loss of revenue or operating needs, and unexpected downturns.
The City will strive to maintain an Unassigned Fund Balance in the General Fund of 10%. This amount is expressed as a goal, recognizing that fund balance levels can fluctuate from year to year in the normal course of operations for any local government. This amount is determined by adding all new budgeted revenues divided by the Unassigned Fund Balance.
It is management’s intent to identify a “not-to-exceed” amount of $1,000,000 as part of the 10% minimum fund balance for unexpected, large-scale events where damage in excess of $250,000 is incurred and immediate, remedial action must be taken to protect the health and safety of residents (e.g. floods, fires, storm damage).
Of the $1,000,000 part of the General Fund’s Unassigned Fund Balance, it is management’s intent to not use any portion of this balance unless such emergencies occur.
It is the goal of the City to limit use of any Unassigned Fund balances less than 10% to address non-recurring needs, otherwise approved by the City Council. Unassigned Fund Balances of less than the 10% minimum as described above shall not normally be applied to recurring annual operating expenditures.
The City of Edmond's goal is to maintain a 10% balance on the General Fund Unassigned Fund Balance.
Accrued absences
Lease liability
Liability
Revenue bonds*
Notes Payable
Total (Thousands)
LONG-TERM DEBT
bonds payable : governmental activities * All bonds are secured by utility revenues and pledged sales tax
notes
At year-end, the City had $519 million in long-term debt outstanding, which represents an increase of $30 million or 6.1% from the prior year.
In 2017, the City issued series 2017 Sales and Utility Revenue Funding Bonds for $167 Million for construction of new Coffee Creek Water Resource Building to allow the City to serve expected growth for a 20 -year period and to satisfy permit requirements established by the Oklahoma Department of Environmental Quality. See our complete disclosed information in our ACFR Notes Section 3E, Long-Term Debt.
Thousands 6,420
5,000,000
ECONOMIC OUTLOOK
FY 20-24 GENERAL FUND’S SALES TAX | ACTUALS
notes
Gross sales tax collections for FY23-24 were down by $3,612,811 in total dollars compared to the prior year. Year-to-date collections (through December 2024) for FY24-25 are down from FY23-24 by (2.02%).
OUTSTANDING ACHIEVEMENT
The Government Finance Officers Association of the United States and Canada (GFOA) has given an Award for Outstanding Achievement in Popular Annual Financial Reporting to the City of Edmond, Oklahoma for its Popular Annual Financial Report for the fiscal year ended June 30, 2023 . The Award for Outstanding Achievement in Popular Annual Financial Reporting is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government popular reports.
In order to receive an Award for Outstanding Achievement in Popular Annual Financial Reporting, a government unit must publish a Popular Annual Financial Report, whose contents conform to program standards of creativity, presentation, understandability and reader appeal.
An Award for Outstanding Achievement in Popular Annual Financial Reporting is valid for a period of one year. City of Edmond, Oklahoma has received a Popular Award for the last fourteen consecutive years (fiscal years ended 2010–2023 ). We believe our current report continues to conform to the Popular Annual Financial Reporting requirements, and we are submitting it to GFOA.
CITY OF EDMOND, OKLAHOMA
FISCAL YEAR ENDED JUNE 30, 2024
2824 PROGRESSIVE DRIVE EDMOND, OKLAHOMA 73034
(405) 359– 4521 • EDMONDOK.GOV